LIC's New Endowment Plan (Plan No. 914)
LIC's New Endowment Plan (Plan No. 914) is a participating, traditional endowment plan that combines life insurance protection with guaranteed savings and bonus benefits. Here's a breakdown of its key features:
Benefits:
- Death Benefit: In case of the policyholder's unfortunate demise during the policy term, the nominee receives the sum assured along with any accrued bonuses. This provides financial security for your loved ones.
- Maturity Benefit: On surviving the policy term, you receive the sum assured and all accumulated bonuses as a lump sum maturity benefit. This serves as a financial reward for your disciplined savings.
- Simple Reversionary Bonus: LIC declares bonuses every year, which are added to the sum assured as "Simple Reversionary Bonus." This enhances your overall corpus upon maturity or death.
- Guaranteed Sum Assured Rebate: Depending on the chosen policy term and premium paying frequency, you can avail a discount on the sum assured, making the premium more affordable.
- Loan Facility: You can avail loans against the policy after a certain period if you require immediate financial assistance.
- Surrender Benefit: If you need to prematurely exit the policy, you can surrender it after a specific period and receive a surrender value.
Key Features:
- Policy Term: 12 to 35 years
- Minimum Entry Age: 8 years
- Maximum Entry Age: 55 years (policy can continue till 75 years)
- Premium Payment Frequency: Yearly, Half-yearly, Quarterly, or Monthly
- Minimum Sum Assured: Rs. 25,000
- Maximum Sum Assured: No limit
Advantages:
- Dual benefit of life insurance and savings: Provides financial protection for your family while also accumulating wealth through guaranteed bonuses.
- Long policy term flexibility: Choose a term that suits your financial goals and risk appetite.
- Guaranteed returns: Ensures predictable growth through sum assured and bonuses, unlike market-linked plans.
- Additional benefits: Loan facility, surrender option, and guaranteed sum assured rebate offer added flexibility and financial assistance.
Things to Consider:
- Premium payments: Regular premium payments for the entire policy term are mandatory.
- Bonuses: Bonus rates are not guaranteed and may vary year-to-year.
- Surrender charges: Early surrender may attract penalty charges.
- Other investment options: Compare this plan with other investment options based on your risk profile and financial goals.
Overall, LIC's New Endowment Plan (Plan No. 914) is a reliable and versatile option for individuals seeking long-term life insurance protection with guaranteed savings and bonus benefits. However, it's crucial to carefully assess your financial needs and objectives before making any investment decisions.
I hope this information helps! If you have any further questions about the plan or specific details like premium amounts or bonus rates, feel free to ask.
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